Yes, the Internet enables small companies with niche products to span the world, and brings greater choice and low prices to consumers worldwide. But even premier global corporations are thinking locally—and your company should be, too.

In May, Amazon [AMZN] decided to sue the State of New York, which passed a law requiring the site to collect sales tax on items bought online by New Yorkers — even if Amazon has no physical presence inside the state. According to the AP, other fiscally-troubled states are now ganging up to pass the same kind of laws.